Glanbia reveals new US acquisition and increased 2018 earnings

Glanbia plc has announced its results for the financial year ending December 29, 2018, revealing a 9% increase in adjusted earnings per share – as well as the acquisition of the US firm Watson.

The dairy giant has announced that it has agreed to acquire Watson, a US-based non-dairy ingredient solutions business, for $89 million.

In its financial results for 2018, the firm recorded adjusted earnings per share of 91.01c – up 9.0% constant currency on the prior year on a pro-forma basis.

Wholly-owned revenue amounted to €2,386.3 million – down slightly on 2017 figures of €2,387.1 million.

Wholly-owned earnings before interest, tax and amortisation (EBITA) came in at €284.9 million, up 5.2% on the previous year’s €283.2 million constant currency, according to Glanbia, while wholly-owned EBITA margin was up 10 bps (basis point) constant currency on the prior year.

Glanbia also completed the acquisition of SlimFast for $350 million in November 2018, described as a “complementary brand within the GPN portfolio”.

Joint Ventures (JV) reported a share of profits after tax (before exceptional items) of €45.3 million – up €2.5 million on the prior year. A number of JV investments were also announced during 2018.

Reported profit for the year was €234 million, up €2.6 million on the prior year on a pre-exceptional basis. While the firm also recorded an operating cash flow of €301.7 million, representing an operating cash conversion rate of 92%.

Glanbia announced a recommended final dividend of 14.49c/share. Full year dividend of 24.20c was revealed – a 10% increase on prior year and representing a pay-out ratio of 26.6% of adjusted earnings per share.

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Finally, Glanbia has announced plans to reorganise the composition of its board of directors during 2019 with appointment of three new independent non-executive directors to its board.